The ironing out of some structural infringements and greater sensitisation about processes across various groupings has been cited among the immediate fixes needed to counter Jamaica’s lacklustre export performance for businesses.

President of the Jamaica Manufacturers and Exporters Association (JMEA) John Mahfood speaking with the Jamaica Observer said that while some progress has been made over the last few years, a lot of work needs to be done if as a country we are to increase export output or even get close to the heydays when manufacturing contributed some 18 per cent of gross domestic product (GDP).

At present output from the sector in the last few years has consistently hovered around 8 per cent.

Pointing to structural challenges locally, such as a smaller and weakened manufacturing base, high electricity cost, labour shortage and an overall lack of access to financing, the JMEA head said that these, among other issues, have been blighting the zeal for especially small manufacturers to increase production and ultimately take advantage of export opportunities.

“If a foreign manufacturer is looking for somewhere to set up plant, they wouldn’t put it in Jamaica. They would maybe do so in Trinidad as the cost of energy there is much lower. With higher cost for energy, local manufacturers now have to become concerned with investing in solar facilities,” he said in outlining one of the pressing issues.

Irrespective of this, businesses, whether large or small, he said, must work through the impediments to get their products into more markets.

“We need to export to grow. It’s one thing to produce for the local economy, but based on our per capita income, which sees us as relatively poor when compared to smaller nations, this indicates that our manufacturers can’t be satisfied with just focusing on our market,” he said, stressing the need for more of them to engage in activities centred around boosting exports.

“We need to use up the available trade deals, travel to new markets, engage new clients, attend more trade shows and link with foreign buyers,” he stated while outlining initiatives such as the JMEA’s Project Amazon, its biennial trade show Expo Jamaica, and the Export Max Programme executed in partnership with the Jamaica Promotions Corporation (Jampro) as some of the measures being undertaken to strengthen export and to fuel the reach of local products.

“Similar to what our ministry has been doing, the JMEA will also next year lead a number of delegations as we take our members to other countries as we jump-start the need for them to also look outwards. We are currently at about eight per cent of GDP, so we have a long way to go in building up our capacity,” Mahfood said.

He said that while the Trade Board data sees Caricom agreements among those having higher usage, its performance was still below the desired levels as, he argued, more trade should be taking place across Caribbean countries. The challenges in doing so he, however, attributed to weak policies and the lack of true regional cooperation.

“If we are not taking advantage of the Caricom markets open to us, I therefore don’t expect to see us breaking down the door to ship to the Dominican Republic, Panama and Costa Rica, to name a few,” he said, commenting on the Trade Board data which shows the Spanish-speaking territories seriously lagging behind in terms of the number of certificates of origin issued under their agreements.

“Going forward, there also needs to be a change in the mindset of our manufacturers…and they have to want to export. Organisations such as the JMEA, Jampro and the Ministry of Industry, Investment and Commerce should continue to lead this charge as we work together to fix the impediments,” Mahfood said.

“We have to start building slowly to develop the base of manufacturing. If we correct the challenges, I think we can in a next five years have about 90,000 people employed and reaching 12-13 per cent of GDP. I’m, however, optimistic but also realistic that this is going to be a slow and gradual process, but I feel we are on the right track,” he added.

For Donovan Wignall, president of the MSME Alliance, he said that for his group predominantly made up of hundreds of smaller players — about 20-30 per cent of which were manufacturers with approximately 20 per cent engaging in exports — the need for greater sensitisation around export processes and the available opportunities of which they can take advantage should become critical areas of focus.

Admitting that enough trade was definitely not being done, he stressed the need for MSMEs to arm themselves with the requisite information if they are to take advantage of what is available in order to advance their positions for export.

“The trade agreements are there. Some manufacturers’ incentives are there such as the productivity incentive relief [PIR], which is a huge benefit that manufacturers can get but not a lot of people, including MSMEs, know about them,” he stated.

He also noted that while the information may be available at a certain level it needs to be shared in such a way that it is also transferred to the people on the ground.

“Going to a website to get information is fine, but we also need to have extended periods of public relations campaign around some of these things until the information is absorbed by the public. It has to be an ongoing campaign if we are going to get the information out to the people that need it,” he stated.

As a response, he said the MSME Alliance will be having discourse with the other groupings to see how best they can through seminars, forums and other engagements get the word to members about what is available.

“In terms of getting this information out there and to where it is needed, that’s some work we will also have to do going forward. For the rest of the year, this is one area in which I think our focus will lie. We will be calling on the people with the information such as the Jamaica Customs, the Trade Board, Jampro, and the Ministry of Investment and Commerce to come and make presentations to our members as we try to equip them with the relevant knowledge.

“Presenting them with the knowledge of how to trade and to go about exporting is a task that we need to complete as soon as possible,” he stated.

Outside of the available trade agreements, Wignall also urged businesses to tap into other opportunities which he believes can also help them to connect with the outside markets.

Referring to a growing number of trade missions, he said there was huge opportunities for uni-, bi- and multilateral trade with Jamaica.

“There needs to be no agreement for trade to take place; what needs to happen is for us as a country to create those opportunities for people to forge relationships and for them to connect with others interested in buying or selling,” Wignall said, while touting the distinct power of Brand Jamaica and the high demand for certain locally manufactured products, which, he said, places us in a privileged position globally.

“Based on the love for our country and brand, we need to also organise more of our own trade missions to markets outside of the traditional areas of focus, targeting those which may not know what we have to offer but will be interested when they do,” he stated.